What time is TESLA (Nasdaq:TSLA) announcement April 2, 2013 and what can the possible news be that is bigger than earnings?
If you don’t know there was a controversial tweet by Elon Musk – CEO of Tesla on Monday, March 25th 2013:
Announcement was to happen last Thursday March 28th but you can see was postponed to Tuesday March 2nd 2013 at 5pmEST /2pmPST.
Reason was a bit controversial is it sounded more what a trader would type on twitter and not a CEO of a company. I admire Elon Musk for starting “out of the box companies” like Paypal , SpaceX but the tweet is a bit on the edge. I own/ have traded TSLA stock and was happy to see the 4% pop after the tweet as well as the move into today’s event but I think sets up a bad precedent for other CEO’s to post info like this ahead of special events. Another trader was telling me that he is not the typical CEO but as a trader I would hate to see this type of info whether I own or don’t own a stock.
He is not a typical CEO and very passionate about anyone talking badly about TSLA. We’ve seen recently how he fought back at a reporter that took a TESLA for a test drive and wrote a bad article about his experience. http://www.nytimes.com/2013/02/10/automobiles/stalled-on-the-ev-highway.html?_r=1&
Thought I would update this with news that came out late Tuesday afternoon:
$NLFX & says executives can use Twitter , Facebook or other social media platforms as a way of disseminating corporate information http://sg22.ly/10tpCUz guess $TSLA ‘s ELON MUSK @elonmusk ok too
Chart I posted for members earlier today in chat (click chart below to enlarge):
I was not sure if I should take some of my core position off. As of this writing I was considering a hedge with options (puts) in case we did drop towards $40 again – We had bounced the idea with MMassassin of a debit spread on April puts $TSLA $38/$39 levels which would make approx $16k+ on a $3k investment if we dropped down to those levels and would hedge part of my core shares but have not decided yet as of 2pmEST. I’m leaning to this play or to sell 1/2 of my core and re-add shares back on any dip to $40 or lower. As of 2:40pmEST we are back over $45 so back over the VWAP that in the chart below.
What could TESLA be announcing Tuesday April 2nd at 5pmEST/2pmEST?
We bounced around what news could be that major of an announcement and we came up with a few ideas:
1)A new Financing/Leasing company for TESLA cars? that would be a way for Musk to put more of his money to work.
Currently TESLA uses Wells Fargo and US Bank as lending options http://www.teslamotors.com/financing but what about a TESLA finance division? That would be a natural since if they get the cars back they could re-lease or re-sell them and have more control on costs/deals for new customers.
2) Increase the guidance and increase production numbers
after reaching cash flow positive last year and the fact they announced they expect TESLA to have its first ever Quarterly profit this would not be unexpected news but wonder if they would leave type of news until earnings : http://money.cnn.com/2013/04/01/news/companies/tesla-profit/
3) Batteries pricing down or new batteries?
They did announce recently that they were getting rid of the 40KwH battery and just focusing on the 60KwH ones but we also know with technology the batteries in the future will last longer and should come down in price as more units and demand expands.
analysts also praised as a “smart move” Tesla’s plans to kill off the lowest-end version of its Model S car. Only 4 per cent of buyers chose that version
4)charging stations news?
according to the TESLA website:
Tesla Superchargers are placed along well-traveled routes in North America. Nine stations are currently active, expanding to over 100 stations in 2015. They’re designed to give road trippers half a charge in about half an hour. That’s 150 miles of range with our 85 kWh battery.
there is also a website that shows all the other charging stations across the US, Canada and Mexico. http://www.plugshare.com/
Government incentives are always a good way to help the growth of charging stations and the rebates offered to new buyers helps like the The US government offering the $7,500 federal tax credit with the purchase of a new Tesla acquired for personal use.
In Canada the government pays up to 1/2 of the cost of a charging station http://www.theglobeandmail.com/globe-drive/new-cars/auto-news/ontario-fires-up-ev-charging-station-rebate-plan/article5962436/
5) A major Partnership deal/announcement : TESLA has done partnership arrangements in the past such as the Toyota deal : http://www.teslamotors.com/about/press/releases/tesla-motors-and-toyota-motor-corporation-intend-work-jointly-ev-development-tm
6)new TSLA modelZZ
This is the least likely but maybe Musk is combining all companies that he has helped to build together as one: Although if the announcement was yesterday April 1st ( April Fools Day ) then would not sound as bad.
So look for an Electric TESLA Solar City (Nasdaq:SCTY) new TSLA model ZZZ that can also convert to a spaceship and fly to space via SpaceX to drive on Mars and will be financed for 6months no money down via Paypal.
This is what I think the Model ZZZ would look like … lol
A few other notes from tweets I posted today :
Reason why TESLA could continue higher or towards $50 is since the Short interest is about 44% of Float 32.3M of 71M & only 22 companies have short interest higher than TSLA http://sg22.ly/10v4ZqX ( all the shorts on TSLA are down at this point since we are at new highs , unless they keep adding more short positions at these high levels but at some point they may not find shares available to short and any higher push may force them to close TSLA short positions). Some may have covered already since the data is from March 15th and could explain why we had such a big pop yesterday after the news: On YAHOO finance shows 64.90% shorts http://finance.yahoo.com/q/ks?s=TSLA+Key+Statistics but the shares are the same 32.3M as finviz data and Nasdaq sites.
I’ve traded TSLA many times in the past as swing and core position and noticed that it does tend to sell off on news. This news has seemed to be pumped up a bit as very major but if it isn’t don’t be surprised to see a sell off towards $40. If we do I can look to load up my swing position again if can hold over that key $40 level.
If I don’t lock up profits and sell today and we get a push towards $50 then I would have no problem to lock up profits there and wait for the next major pullback.
Tesla stock has done very well for me and thought to share this analysis ahead of the event tonight.
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